6 Famous Bankruptcies of 2013

Photo (cc) by JasonParis

The city of Detroit made history when it filed for bankruptcy protection in July. The largest municipal bankruptcy case to date continues to make headlines into 2014, but it’s hardly the only high-profile bankruptcy filing of 2013.

Municipal filings were actually more common in 2012, when California kept making headlines because Stockton, San Bernardino and the town of Mammoth Lakes filed for Chapter 9 bankruptcy. In 2013, on the other hand, celebrity names seemed to dominate insolvency headlines.

Chapter 7 filings

Petitions for bankruptcy protection filed under Chapter 7 of the U.S. Bankruptcy Code are also known as Chapter 7 bankruptcy filings or personal bankruptcy filings. When a bankruptcy judge ends such a case with a discharge order, the debtor is free of most of their debts and creditors can’t come after them for those debts.

Casey Anthony

On Jan. 25, more than two years after she was aquitted of murdering her 2-year-old daughter, Casey Anthony filed a petition for bankruptcy protection that cited numerous debts related to her trial. Last month, the bankruptcy judge granted a discharge.

Anthony’s petition cited:

  • Total liabilities of $792,119.
  • Total assets of $1,084.
  • The largest debts included $500,000 owed to her attorney and $145,660 to the Orange County (Florida) Sheriff’s Office for a “judgment for investigative fees and costs.”

Sinbad

Also known as David Adkins, the comedian and star of the 1990s sitcom “The Sinbad Show” filed for bankruptcy protection on April 4. The media tends to report the filing as his second in four years, but court records show that his 2009 petition, also under Chapter 7, was dismissed by the judge for failure to file paperwork.

“I kept thinking, ‘OK, I’ll get one more movie, and I’ll wipe these bills out,'” he told The Huffington Post. “But that movie didn’t come.”

The second time around, the judge granted Sinbad a discharge.

  • Total liabilities of $10.99 million.
  • Total assets of $131,126.
  • The largest debts included $8.26 million owed to the IRS.

Kelly Rutherford

The “Gossip Girl” and “Melrose Place” actress filed for bankruptcy on May 20. A divorced mother of two children under age 10, she listed average monthly expenses of $1,760 and an average monthly income of $1,279 in her petition, which ended with a discharge.

  • Total liabilities of $2.02 million.
  • Total assets of $23,937.
  • The largest debts included $358,960 to multiple government units for various types of income taxes and more than $250,000 for legal bills related to a custody dispute.

Chapter 11 filings

Petitions for bankruptcy protection under Chapter 11 are also known as reorganization because the debtor, generally a business but sometimes a business person, often wishes to reorganize in an effort to get out from under their debts over time.

Girls Gone Wild franchise

GGW Brands LLC and affiliated GGW companies filed for bankruptcy protection in February. In the petition filed by GGW Brands, however, every debt is listed as disputed.

Ronald Tym, an attorney for the franchise founded by Joe Francis, told The Wall Street Journal that the petitions stem from claims filed against GGW companies in the wake of several legal judgments against Francis.

“The bankruptcy filing will enable us to have the court determine the legitimacy of the claims in one time at one court. It’s trying to conserve resources to get those claims resolved,” Tym said of the ongoing cases.

GGW Brands LLC’s petition cited:

  • Estimated liabilities of between $10 million and $50 million.
  • Estimated assets of $0 to $50,000.
  • Largest debts include a disputed $10.3 million to the Wynn Las Vegas resort.

DMX

Known by his stage names “DMX” and “Dark Man X,” rapper and actor Earl Simmons filed a petition for bankruptcy protection on July 29. According to an affidavit he filed the same day, he opted for Chapter 11 “to enable [him] to reorganize [his] financial affairs and be able to confirm a plan of reorganization.” Court records show the request was eventually dismissed by the judge, following the bankruptcy trustee’s request for a hearing about converting the case to a Chapter 7 bankruptcy or dismissing it.

  • Estimated liabilities of between $1 million and $10 million.
  • Estimated assets of $0 to $50,000
  • Largest debts included $1.33 million to Child Support Enforcement of Albany, N.Y., for child support.

Loehmann’s

In a sad day for designer-label bargain shoppers, Loehmann’s filed a petition for bankruptcy on Dec. 15, court records show. The ongoing case is not the first for the 92-year-old chain, but it looks like the last: Dow Jones reported reported that Loehmann’s will begin closing its 39 stores this month for failure to find a buyer.

  • Estimated liabilities of between $100 million and $500 million.
  • Estimated assets of between $50 million and $100 million.
  • Largest debts include $546,317 to women’s clothing company Leon Max Inc., better known by its Max Studio brand.

P.S. Their designer discounts are currently discounted by up to another 50 percent online. Keep an eye on your local store, too, for going-out-of-business sales.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
15 Things You Should Always Buy at Yard Sales
15 Things You Should Always Buy at Yard Sales

You can save a ton of money — especially if you spot any of these items.

8 Products That Solve Everyday Annoyances
8 Products That Solve Everyday Annoyances

These items put an end to the daily irritations that bug you the most.

7 Tips for Building an Emergency Stockpile
7 Tips for Building an Emergency Stockpile

A pandemic or natural disaster could leave you reliant on your existing food supply. Is your pantry prepared?

These Are the 9 Best Benefits of Amazon Prime
These Are the 9 Best Benefits of Amazon Prime

These top-notch perks of an Amazon Prime membership won’t cost you a dime extra.

12 Ways to Never Pay Full Price for Anything
12 Ways to Never Pay Full Price for Anything

Stop paying retail prices. Here are plenty of ways around that.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

The 15 Worst States for Retirees in 2020
The 15 Worst States for Retirees in 2020

Based on dozens of metrics tied to affordability, quality of life and health care, these are not ideal places to spend retirement.

11 Household Items That Go Bad — or Become Dangerous
11 Household Items That Go Bad — or Become Dangerous

When you get the impulse to stockpile these everyday items, pay close attention to their expiration dates.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

8 Things You Can Get for Free at Pharmacies
8 Things You Can Get for Free at Pharmacies

In this age of higher-priced drugs and complex health care systems, a trip to the pharmacy can spark worry. Freebies sure do help.

This Is the Cheapest Place to Buy a Used Car
This Is the Cheapest Place to Buy a Used Car

Looking for a good deal on a set of wheels? This should be your first stop.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

26 States That Do Not Tax Social Security Income
26 States That Do Not Tax Social Security Income

These states won’t tax any of your Social Security income — and in some cases, other types of retirement income.

Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?
Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?

You could save more than $30,000 by setting aside these costly expenses for just one year.

10 Things the Pandemic Is Making Obsolete
10 Things the Pandemic Is Making Obsolete

Even if a COVID-19 vaccine is discovered tomorrow, it’s unlikely we will ever return to these ways of life.

5 Keys to Making Your Car Last for 200,000 Miles
5 Keys to Making Your Car Last for 200,000 Miles

Pushing your car to 200,000 miles — and beyond — can save you piles of cash. Here’s how to get there.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

10 Deep Discounts Available on Amazon This Friday
10 Deep Discounts Available on Amazon This Friday

These items are all steeply discounted — but the deals won’t last long.

5 Things That Make Life More Meaningful for Retirees
5 Things That Make Life More Meaningful for Retirees

Retirees agree: These are the things that give them purpose and fulfillment in their golden years.

15 Amazon Purchases That We Are Loving Right Now
15 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.